WALTHAM, Mass., July 19 /PRNewswire-FirstCall/ -- Inverness Medical Innovations, Inc. , a leading manufacturer and marketer of rapid diagnostics products for the consumer and professional markets, announced today that the United States District Court for the District of Massachusetts has granted Inverness' motion for a preliminary injunction against Acon Laboratories, Inc. Acon sells various immunoassay products throughout the world, and is a supplier of private label consumer diagnostics products to major retailers and other distributors. The injunction, when it goes into effect, is expected to cover Acon's sandwich-type immunoassay tests, including strep, pregnancy and ovulation tests, in the United States. In a Memorandum and Order issued on July 16, 2004, the Court also granted Inverness' motion for summary judgment of infringement, finding that Acon has infringed Claims 7 and 19 of U.S. Patent No. 6,485,982 (the "'982 patent"). In addition, the Court denied Acon's motion for summary judgment of invalidity of Claims 7 and 19, and found that on the basis of the record before her, Inverness had shown that it was likely to succeed in its arguments against Acon's invalidity contentions. The two claims of the '982 patent at issue were also the subject of recent Markman hearings in the lawsuit between Inverness and Quidel Corporation, now pending in U.S. District Court in San Diego. Inverness asserts in that case that Quidel is also infringing the '982 patent.

The Court's order directs Inverness to file a proposed form of injunction order, and gives Acon ten business days to propose an amount of a bond for the injunction. The Court's order also notes that certain issues relating to Acon's challenge to the validity of the claims can be heard at trial. Under the scheduling order currently in place, a trial is scheduled for early November 2004.

In a related case also pending in the District of Massachusetts against Acon, Inverness has accused Acon of infringing certain other patents owned by an Inverness subsidiary, and has moved separately for summary judgment of infringement of one of those patents as well. The motion is pending. Inverness, in its claims in both cases, is seeking both damages and permanent injunctive relief against Acon.

The favorable court ruling is likely to have a positive effect on sales, as Inverness may be able to acquire new accounts for products that were previously supplied by Acon. However, Inverness also cautioned investors that, due to revenues of approximately $88 million in the second quarter of 2004, higher than anticipated expenses for legal matters and research and development and shifts in revenue mix, it expects results for the quarter to fall short of previous expectations. Inverness expects to further discuss the impact of the Court's ruling and provide revised guidance during its next earnings conference call scheduled for Wednesday, July 28, 2004.

Ron Zwanziger, CEO of Inverness Medical Innovations, stated, "We are extremely pleased with this decision, which confirms the strength of our patent position, and we believe that this development and other positive developments in the area of IP litigation will, despite the issues discussed above, contribute to continued positive momentum towards our long term goals in 2005 and thereafter."

For more information about Inverness Medical Innovations, and to see a copy of the Court's Memorandum and Order, please visit our website at http://www.invernessmedical.com/.

Inverness Medical Innovations is a leading global developer of advanced diagnostic devices and is presently exploring new opportunities for its proprietary electrochemical and other technologies in a variety of professional diagnostic and consumer-oriented applications including immuno- diagnostics with a focus on women's health, cardiology and infectious disease. The company's new product development efforts, as well as its position as a leading supplier of consumer pregnancy and fertility/ovulation tests and rapid point-of-care diagnostics, are supported by the strength of its intellectual property portfolio. The Company is headquartered in Waltham, Massachusetts.

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements about the anticipated timing and outcome of the legal proceedings, the impact of the order on our sales and operations and our anticipated operating results for the second quarter of 2004. These statements reflect the Company's current views with respect to future events or financial performance and are based on management's current assumptions and information currently available. Actual results may differ materially due to numerous factors, including without limitation the schedule adopted by the Court for future proceedings, possible additional evidence, claims or defenses that Acon may seek to offer in support of its case, outcomes in other litigations, additional rulings by the Court, the final terms of any order that the Court may issue in the case, the outcome of the trial on the merits of the Company's claims, demand for the Company's products, the intensely competitive environment in the Company's markets, the ability of the Company to successfully develop and commercialize products and the risks and uncertainties described in the Company's periodic reports filed with the Securities and Exchange Commission under the federal securities laws, including the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004. Inverness undertakes no obligation to update any forward- looking statements contained herein.